Google launched its digital wallet and virtual cards at latest developer conference

• first payments related movement from Google since Plex was scrapped

  • teamed up with 11 banks for users to choose which bank they want to open an account with

  • all integrate into Google Pay

• previous attempts with Google Pay

  • traction in India

  • struggles everywhere else

  • lots of competition with Apple, Samsung

Features of this launch

digital wallet

• can save non-card items like flight tickets, vaccine cards

  • like Apple Wallet

• integrate with other apps and services

  • transit balance shows up for google maps

• google pay

  • P2P payments

• supports crypto as a payment option

  • fiat only

  • add a crypto card

  • no wallet integrations

virtual cards

• auto-fill increasing in security

  • convert cards to virtual for shopping

  • dynamic CVV

• support for Capital One, Visa, Amex, Mastercard

• data NOT used for ads

History of Google Payments Products

• Google Wallet launched in 2011 as a mobile payment service app (tap to pay)

  • restrictive - needed a Citi MasterCard Account or Google Prepaid Card.

• Android Pay was next in 2015

  • easier to use but still contactless pay

• Google Wallet Card discontinued. Google Wallet merged with Android Pay. Gave birth to Google Pay in 2018

  • contactless in person payments + P2P payments online

  • was the Android wallet

• Google Pay Wallet became Google Pay Send for P2P. This was discontinued in 2020

• India: Google Tez. Basically Google Pay on steroids with messaging features, personalized offers, better software

• Old Google Pay discontinued in April 2021

• 2022 / Today: Google Wallet returns! Plus Wear OS. Store debit/credit cards, other cards. Replaces Google Pay completely. Indian users will continue as Google Pay though.

Google's strengths and strategies

• search and online services

• fat balance sheet

• no fees

• NOT a bank

• Google's plays in payments haven't been as flashy as Apple / PayPal / other fintechs

• partnership approach - build an open ecosystem, leverage shared data. that is google's strength

  • ~ connective tissue ~

  • enabler of ecosystems

  • no fees = hook to get people to use Google's bread and butter more (search & online services)

    • payments part of their funnel

    • part of the commerce experience / journey

New hire: Arnold Goldberg, Google Payments GM

• ex-PayPal executive (8 years running merchant business)

• joined in January to build the Google financial platform